Flotek Industries reported a 70% year-over-year revenue increase to $100 million in the second quarter of 2026, marking the highest quarterly revenue in more than a decade. The Houston-based energy services company raised its full-year 2026 guidance to call for a 49% revenue increase and a 45% improvement in adjusted EBITDA compared with 2025, excluding power board contracts.
The company’s turnaround strategy, implemented by current management since mid-2021, has accelerated its shift toward recurring revenue models. Recurring revenue backlog topped $500 million, up from zero in 2021, while total addressable market expanded from roughly $2 billion in 2021 to nearly $20 billion, with about $18 billion less tied to oil and gas commodity prices.
Data analytics now accounts for more than 51% of total gross profit, a division that grew 223% year-over-year and 85% sequentially from the first quarter. Gross margins in this segment exceed 75%, compared with mid- to upper-20% margins in the company’s chemistry business. Overall gross profit margins stood at approximately 25% over the last twelve months.
Flotek’s upstream data analytics technologies, including its XSPCT Analyzer and Prescriptive Chemistry Management platform, have achieved commercialization since the second half of 2025. The company’s PWRtek platform and JP3 hydrocarbon measurement database support real-time monitoring capabilities, with gas quality measurements taken every one-eighth of a second and engine output readings every three to five seconds.
The company’s digital valuation services, launched in the fourth quarter of 2025, are on track for 150 deployments by the end of 2026, with about 120 already in place. Standard equipment costs range from $150,000 to $200,000, with payback periods of less than three months.
In Saudi Arabia, Flotek holds 100% market share of hydraulic fracturing fluids for the Jafurah field and expects frac crews to increase by 50% by December 2026. The company also reported improved fuel substitution rates from 25% to more than 80%, reaching the upper 90% range in some cases, alongside estimated annual customer savings of $3 million to $5 million.
Flotek’s stock, trading at $28.555 on Monday, has appreciated 620% since 2023, though it remains down 21.7% from its 52-week high of $39.67. Return on equity reached 38% according to InvestingPro data.
